The Pagination stops working on a Page, if i set that Page as the Front Page under General Options.
With the Theme that i use, it redirects me to a blank Page when i click on Page 2 or any other page in the Blog-in-Blog Pagination.
With the standart twenty ten and twenty eleven theme, it redirects me to a page with the latest Post. The URL im redirected to is (example): domain.com/?bib_page_offset=5
If the Page is not set as the Front Page, it works just fine.